The embattled chairman said he played down the club's need to sell players following relegation from the Premiership to stop other clubs taking advantage of their situation.

Brown, who was the subject of jeers and demonstrations before, during and after last night's 3-1 Carling Cup first round win against Rushden and Diamonds at Upton Park, told shareholders in May that only one or two players would have to be sold and there would be no wholesale exodus.

Since then the club have sold Joe Cole, Freddie Kanoute, Glen Johnson and Trevor Sinclair, while 12 other players have been let go.

Supporters are furious and fear that Jermain Defoe will be the next key player to leave with Manchester United waiting in the wings.

But Brown said: "We are now in a sound financial position and have delivered everything we promised our banks. We have no need to sell any more players for financial reasons and that includes Jermain. Those who say we should have shown more ambition and kept the whole squad together need to understand that by November we would have run out of cash and any cheques drawn by the club after that time would have bounced.

"I've been told by supporters that I should have been more open with them and explained that we were running out of cash and needed to raise £20million in what was a nonexistent transfer market (prior to the arrival of Roman Abramovich in July).

"Had I done so my former colleagues in the Premier League would have 'smelt blood in the water' and the financial consequences do not bear thinking about. I hope you will appreciate why we could not say more earlier."

Brown says the surgery they have performed on the squad this summer has saved £10m and brought in a further £18m in transfer fees.

He claimed former captain Cole, sold to Chelsea for £6.6m, would have been transferred even if West Ham had stayed up because he had one year left on his contract and wanted Champions League football. Brown has previously apologised to fans for transfer market mistakes which contributed to relegation last season but said: "The time has now come to stop looking back at what might have been.

"We have two tasks in hand. Firstly, to sort out our finances, secondly, to return to the Premier League."